Calculation of Research F&A Rate F&A Costs (overhead) = F&A Rate Organized Research Base (incl. University Research) All direct (MTDC) expenses related to organized research Sponsored project costs Stanford must be able to track University-funded competitive awards (Univ. Research) Cost overruns/overdrafts on sponsored projects Committed cost sharing in order to calculate the Organized Research Base, used in the calculation of the indirect cost rate. As the denominator of the indirect cost rate fraction increases (with the inclusion of costs that were previously not part of this calculation), one effect is the lowering of the University’s indirect cost rate, including a reduction in the indirect cost dollars that we recover. The full definition of University Research can be found in the Stanford Policy on “Classification of Sponsored, University and Department Research,” Research Policy Handbook 3.4. See also “Indirect Costs: Calculation of Rates” in the Research Policy Handbook for a general explanation of expenses and bases in the determination of rates. Committed Cost Sharing Overdrafts University-funded competitive awards